12/18/2012
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Transforming Health Care
In Oregon
David Labby, MD PhDChief Medical Officer
Health Share of Oregon
Utah Better Care ConferenceSalt Lake City– December 14, 2012
12/18/2012
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Health Transformation in Oregon
12/18/2012 LEGACY HEALTH3
““““Coordinated Care Organization”””” Vision (HB3650)
• Community based organizations with strong consumer involvement in governance that bring together the various providers of services
• Responsible for full integration of physical, behavioral and oral health, elimination of fragmentation
• Global budget
– Revenue flexibility to allow innovative approaches
– Opportunities for shared savings
– Manage to agreed upon rate of growth
• Accountability through measures of health outcomes, patient experience and resource use
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““““Health Share of Oregon””””
• September 1, 2012: 11 organizations around Portland, Oregon
become a newly formed non profit (501c3) Medicaid
“Coordinated Care Organization” (CCO)
– Partners include 3 County Mental Health Organizations, 4 Health
Plans, 3 Hospital Systems, Public Health, and Community Clinics
– They agree to collectively manage 265,000 enrollees in FFS and
previously managed Medicaid under a single global budget for all
physical and behavioral health services and be held jointly accountable
for “Triple Aim” outcomes metrics
– Everyone agrees that the CCO should fundamentally change
organizational relationships
• Many had thought it unlikely that these historically
competitive and disparate organizations would get this far…
What is happening in Oregon?
Why are people in health care working together, creating partnerships, building ““““shared service”””” systems …and being
looked to as a potential model for national health reform?
??
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State Level Answers…• Answer: Medicaid Budget cuts of -26%
– Recession driven State Budget deficit: $1.7 Billion (-24%)
– Projected Medicaid cuts over 5 years $4.1 Billion (-29%)
– 40% cuts will come from Tri County region = -$2.5 Billion / 5 yrs
• Answer: 20 year State dialog on health care reform – 1990s: Oregon Health Plan with “prioritized list;” 100k expansion
– Continuing series of legislative initiatives looking to expand coverage
– 2011 creation of Oregon Health Authority (OHA) to manage all State financed health purchasing: Medicaid, Public Employees, and State Educators
• Answer: “System Transformation” chosen over cuts in enrollees or benefits
Health care: Innovation is key,
governor saysOregon faces in 2011-13 an $860 million gap between funding and costs for nearly
600,000 people on the Oregon Health Plan, a 39 percent cut.
Kitzhaber has proposed to cut $570 million with traditional tactics -- reductions in administrative cost and health plan benefits and a 19 percent cut in Medicaid payments to doctors and other providers. But he doesn't want to kick people off the plan as other states have. Instead, he wants to
close the remaining $290 million gap by saving through reform.
"The only way out of this is to innovate or die," said the governor, also a physician.
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April 8, 2011
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Origins Of The Tri County CCO• Historically competitive market: little integration after
collapse of managed care in 1990s
• 2008: Oregon Health Leadership Council formed at request of Oregon business community to take on quality and cost – 30 State health leaders from major medical groups, hospitals/ health
systems, medical and hospital associations, local and national health plans, and director of Oregon Health Authority
– 4 years working on payment reform, benefit design, best clinical practice, administrative simplification
• Recent history of delivery system change efforts– Oregon “Medical Home” initiatives from health plans, systems and
State starting 2007; New state PCPCH Medicaid payment model 2012
• 2011 OHLC State wide CCO initiative– After 6 month consulting process decides CCO formation should be
community based
“Tri County Medicaid Collaborative”
• Tri County leaders meet 1 week after OHLC decision to start TCMC.– Executive Steering Committee created; Chair appointed
• First question: whose in?– Initially: 3 health plans, 2 Hospital Systems, 1 county.
– Quickly expanded to 2 more counties, community health clinics; ultimately last hospital and health plan
– Should Medical and Nursing “Associations” be allowed in?
– What about network providers? Mandated Board (TBA)…
• What is relationship to community service providers?
– Legislatively mandated “Community Advisory Council” (TBA)
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“The Money is the Money”
• Agreement that budget cuts mean limited State funding should be used in most cost effective manner and divided equitably– Agreement that those with “skin in the game” have more rights
– Agreement on “Play or Pay” principle
• Little agreement beyond participation in global budget. What about: – Medicaid health plan reserves?
– Reserves of those who have had a competitive advantage by not participating in Medicaid?
• Level of financial risk keeps everyone at the table
• Weekly Executive Steering Committee 2 hr meetings; long discussion, slow progress: “ Storming, forming, norming”
“Provider Accountability / Control?”
• Agreement on increasing provider accountability – CCO legislation requires new “accountable” payment models
– Paying for “value” vs “volume” / “outcomes” vs “services”
• Acknowledgement of wide variation in capacity of “providers”
to take risk– Some integrated health systems managing risk with own health plans and
providers
– Majority of providers have no risk bearing capacity
• Largest health plan (CareOregon) a diverse network of Safety Net FQHCs, hospital systems,
Academic Medical Center, large and small community primary care and specialty practices
• 1990s Managed Care experience reinforces provider risk aversion
• How do we move toward increased provider organizational
risk capacity, especially as funding decreases?
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What Is The Role of Consumers / Community?Community Advisory Council
51% consumers: oversees Community Health Assessment and resulting
Community Health Improvement Plan (CHIP)
Steve Weiss, Chair (Consumer Member – Multnomah County)
Amy Anderson (Consumer Member – Multnomah County)
Gary Cobb (Consumer Member – Multnomah County)
Glendora Claybrooks (Consumer Member – Washington County)
Joseph Lowe (Consumer Member – Clackamas County)
Lyla Swafford (Consumer Member – Washington County)
Ronda Harrison (Consumer Member – Washington County)
Tab Dansby (Consumer Member – Multnomah County)
OPEN (Consumer Member – Clackamas County)
Dalila Sarabia, Vice Chair (Community Member - Hillsboro Family Resource Center)
Dan Peccia (Community Member – Self Determination Resources)
Faith Gilstrap (Community Member – Oregon Family Support Network)
Kate O’Leary (Community Member – Washington County Health & Human Services)
Sam Chase (Community Member – Coalition of Community Health Clinics)
Sonja Ervin (Community Member – Alliance of Culturally Specific Behavioral Health Providers)
Susan Myers (Community Member – Multnomah County DHS)
Trell Anderson (Community Member – Housing Authority of Clackamas County)
Health Share of Oregon•3 key elements of Transformation Plan to be presented to the State of Oregon
Risk & Payment
Aligning incentives to provider-driven care and provider accountability
Administrative
Transformation
Simplification of administrative
services for providers and
members
State Required Transformation Plans
Health System
Transformation
Aligned Efforts With Clinical
and Service Partners
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Risk Transformation
• Exactly how will risk be “Transformed?”
• Those who manage risk well already hesitant to be at risk with those who do not manage risk at all -- those who don’t manage risk hesitant to assume it…
• Initial “Pass Through” compromise:– CCO initially delegates full risk to existing Physical Health and Behavioral Health Plans;
reserves will be held by the plans.
• Strong State pressure to move from “shell” CCO
• “Neutral” outside consultants hired to develop risk model– “Gradualist” approach proposed: step wise transition from “shared savings” (with health
plan) to “partial capitation” to “full capitation”
• What is decided by the CCO? – Setting of administrative expenses percentage by all full risk partners
– Setting of floor for medical spend before funds revert to CCO
Administrative Transformation• Exactly what does administrative simplification mean?
– Centralization vs Standardization vs Alignment
– Does centralization really save money?
• Resistance by plans and integrated systems to centralize functions, but general agreement for “standardization”– Common formulary but not common Pharmacy Benefit Management
– Common utilization management standards but not centralized UM
– Centralized ID cards, handbooks, CCO customer service…
• Common reporting to State of encounter and quality data drives initial data standardization – State requires unified encounter reporting
– State CCO quality metrics require standardization
– Need for common metrics for performance for “transparency;” systems to gather and report data for regular monitoring
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Delivery System Transformation
• Responsible for full integration of physical, behavioral and oral
health
• Global budget
– Revenue flexibility to allow innovative approaches
• Must reduce cost trend by (at least) 2 percentage points over
3 years (CMS requirement for $1.9B 5 yr Investment; must
meet quality targets.
• Must be prepared for “Fiscal Cliff” in 5 years…
• … but exactly HOW?????
“We Can Do This!!!”
Meanwhile... back in the delivery
system
• Multi system collaborative application for CMS
“Innovations Challenge Grant” (Nov-Dec 2011)
• Alignment with Tri County Assets and Challenge
– History of multi party collaboration
– Projects must take cost out of system rapidly
– Existing projects that can be taken to scale
– ? Springboard to CCO delivery system transformaton?
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Whose Health? What Do They Need?Health Share Membership
18,46825,063
118,854
0
20000
40000
60000
80000
100000
120000
140000
Standard High acuity Low acuity
27% of our enrolleesare high acuity
<1
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Very High Prevalence of Mental Health
and Addictions (State of Oregon DMAP Data)
CareOregon Tri County Claims Data: 21% Adults have 1+ chronic condition PLUS substance abuse or schizophrenia + bipolar disorder; 3%, both.Based on HSO 160,000 members (40% Adult). 21% Adults = 13,440; 3% Adults = 1920 (no FFS)
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Clarifying Multimorbidity Patterns to Improve Targeting and Delivery of Clinical Services for Medicaid
Populations
Cynthia Boyd, Bruce Leff, Carlos Weiss, Jennifer Wolff, Allison Hamblin, and Lorie Martin CHCS DECEMBER
Where is the $$$ going?% of Total Billed Charges by Service
(State of Oregon Medicaid Data)
* Outpatient Behavioral includes mental health services and ER and non-ER chemical dependency services
2009 Total Billed Charges =$1,630,851,673
Hospitalizations and ER admits amount to 43%
of Billed Charges
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Obvious conclusion
• “Usual medical care” – even really really good usual medical care – will not be enough for the high acuity population.
– Care Management / Case Management will be critical
– Access to mental health and addictions resources will be critical
– Socially determined risks cannot be ignored or assumed outside of “health care”
– New (and less costly) approaches will be critical
Matching Services to Patient Need
Complex
Population
Moderately Sick
Population
(1 or 2 chronic diseases)
Relatively Healthy Population
Complex and Costly Population
10% using 50% of the $$$
Need = Excellent Primary
Care and Preventive
Services
Need = Plus Disease Management/Care
Management and Integration with Specialists
Need = Plus Integrated Behavioral Health and
Connections to Social Services
Need = ???? How do reach out to find out?
Driving change from patient
need�
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Serving Our Clients on
Their Turf
Community outreach workers are paired with primary health homes and specialty practices to enhance the practices’ ability to provide individualized ‘high touch’ support to patients with exceptional utilization
• Staff are hired for engagement skills, compassion, non-judgmental attitude, outreach experience
• Focus is on the social determinants that drive high-cost medical utilization
• Voluntary program
• High PCP/Specialist involvement
• Outreach worker is incorporated as part of the practice team, but also has identity with a larger community of practice
• Documentation occurs in the practice’s EMR; population view and process metrics stored in a community care registry
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Its all about engagement�
What Are We Learning?
• High prevalence of childhood and life trauma (relevance of the ACE study); often translates into distrust of health care providers
• Prevalence of substance abuse, mental health conditions, and cognitive impairment
• Challenges with problem solving, system navigation, advocating for needs, self-management and relational skills
• Lack of timely access to psychiatric assessment and mental health respite services
• Care coordination needs extensive (particularly between sites of care)
• Many cant afford or do not have access to very basic non-medical items or services ( ie transportation, stable housing, healthy food, medications, place to exercise, etc)
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William
Chronic Heart Failure
Schizoaffective
Disorder
History of Addiction to
IV Drugs and Alcohol
COPD
Hepatitis C
Type 2
Diabetes
Intermittent
Homelessness
Developmental
Disorder
62 Year Old Caucasian Man
October 2011:
Admitted to the hospital for almost a
month for acute complications of his
Chronic Heart Failure. Had a previous
25 day admission 5 months earlier.
Mid January 2012:
Client committed to disengaging with
drug-related relationships & strives to
decrease police interactions and
addictions
October 2011:
Admitted to the hospital for a almost
month for Acute on Chronic Systolic Heart
Failure and hospital pays for a month of
Adult Foster Care instead of further
admission
William
Mid November 2011:
Met Community Outreach Worker and
identified need for change, including
higher level of care, housing and dealing
with addiction
Late November 2011:
Support for DD screening in conjunction
with loss of Adult Foster Care – motivates
desire to change behavior and addictions
November 2011:
Medication management by PCP and psych
NP possible, due to stable housing
arrangement
December 2011:
Feeling better, renewed interest in
volunteer work
Early February 2012:
Approved for Hospital Bed needed for
sleeping uprightMid March 2012:
Strong connection with DD case manager,
planning for ICCT Program graduationLate April 2012:
Emergency Room visit due to high glucose,
but not admitted. Engaged with AFC to
monitor glucose and food intake
Current:
*No Hospitalizations
since 11/3/11
*No ER visits since 4/25/12
*No known relapses on
drugs or alcoholEarly January 2012:
DD referral, screening, and support
established
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Where Do We Start?
• Strategy #1: Leverage CMMI Health Commons Grant as springboard for
broad delivery system change
– Creates new 50+ FTE new direct service HSO workforce to focus on reducing
high utilization driven by unmet socio behavioral needs
– Target group approx one third of all high acuity/ cost members
• Strategy #2: Align clinical efforts of partner organizations around CMMI
Health Commons effort
– Convene Clinical Leaders to align Medicaid strategic planning efforts: large scale change
means large systems change
– Coordinate Care Management efforts of all partner organizations to create “virtual care
management system”
– Drive practice change efforts from needs of managing high acuity members: embedded
care management and behavioral health, integration with mental health and addictions
• Strategy #3: Build community partnerships with services that effect HSO
outcomes and cost
– EMS, supportive housing, social services, family support programs, schools etc
– Help align local community assets to support those at risk
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Risk & Payment
Aligning incentives to provider-driven care and provider accountability
Administrative
Transformation
Simplification of administrative
services for providers and
members
CMMI
Health
Commons
Grant
Other Clinical
Opportunities
“Total System Transformation”
Health System
Transformation
Addictions
Housing
Crisis Response
Community Services
Mental Health
Maternal
Child WG
Grant
Oversight
Team
Pharmacy
WG
Addictions
WGCare
Mgmt. WG
Old Town /
China Town
WG
Behavioral
Health
System
Steering
Committee
Crisis
System
Quality
and Perf.
Mgmt.
SubgroupUtilization
Mgmt.
Case Rate
Project
Health
Home
Integration
Acute Care
System
Mgmt.
Outreach
(ICCT Steering
Committee)
Hospital-to-home
(C-TraIn
Oversight Team)
Discharge
(Standard
Transition
Advisory Group)
Mental Health
(ITT Workgroup /
Oversight
Committee)
IT Platform (Led by IT Oversight Team)
Reporting and Evaluation (Led by Evaluation Workgroup)
ED Navigation
(ED Guide
Steering
Committee)
Intersections
Group
Project Leads and
Project Managers
Community
Advisory
Council
CMO
Workgroup
Health Share Clinical Workgroup Structure11-13-12
CMO Workgroup and Grant Oversight Team Accountable to HSO Board
Learning System (Led by Learning System Workgroup TBD)
(2013 Learning Collaboratives: April 26; Aug 23; Dec 13)
Supported
Housing
WG
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Putting It All Together…
• Major focus of all CCOs has been control of global budget – how to divide
up the money
– Given the budget gap and potential deficits, who will be “on the hook?”
• Am I paying more than my share? How do I keep what I have?
• How come they aren’t doing their share?
• Delivery System Change has been a separate conversation
– How can the needs of the population drive system change?
– What is the role of the community / members?
• Emerging P4P: linking outcomes to budget
– $1.9 B agreement with CMS includes increasing P4P withhold
– CMS requires State to establish metrics to demonstrate that ALL goals of Triple
Aim are being met
Parallel conversations:
State P4P CCO Metrics
1. CAHPs Composite (7Qs)
2. Rate of PCPCH enrollment
3. ED Utilization (HEDIS)
4. Initiation and Engagement of Alcohol and Drug Treatment
5. Follow-up after hospitalization for mental illness
6. Mental health and physical health assessment for children in DHS custody
7. Screening for clinical depression and follow-up plan
8. Reducing elective delivery before 39 weeks
9. Prenatal care initiated in the first trimester
10. Developmental screening by 36 months (hybrid)
11. Colorectal Cancer Screening (hybrid)
12. Substance misuse: Screening, Brief Intervention and Referral for Treatment (SBIRT)
13. Optimal Diabetes Care (D3)
14. Controlling Hypertension
15. Adolescent Well-Care visits
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“Transforming Health Together”
There’s no other way…
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